Firm a Is Planning on Merging with Firm B

question 45

Multiple Choice

Firm A is planning on merging with Firm B.Firm A will pay Firm B's equityholders the current value of their equity in shares of FirmA.Firm A currently has 2,300 shares of equity outstanding at a
Market price of £20 a share.Firm B has 1,800 shares outstanding at a price of £15 a share.What is
The value per share of the merged firm?

• A)£19.00
• B)£19.18
• C)£19.44
• D)£20.00
• E)£20.33

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Definitions:

Social Awareness

Having empathy for others and having intuition about work problems.

Team Leader

A person who provides guidance, instruction, direction, and leadership to a group of other individuals (the team) for the purpose of achieving the team's goals and objectives.

Developing Attitudes

The process of forming or changing attitudes or opinions towards certain subjects, objects, or individuals.

Direct Instruction

A teaching approach focused on structured, explicit, and systematic instruction to teach specific skills or concepts.